Wednesday, November 23, 2016

For Those Keeping An Early Score...

...On Trump's march to drain the swamp in Washington DC, what do we have so far? Are we talking about an amazing reconfiguration of the power landscape to be a part of this change?

Not so much.

He is in fact looking like he will be bringing in more of the same into his cabinet, including the very Republican main liners who tried to trash him during the campaign. And I know he's indicated that he's given the TPP trade deal partners notice on pulling out of that deal, but how much real zeal, let alone real effort, will actually come from that rhetoric? What are the possibilities that a token effort will be made, knowing that cooler heads in Congress are unlikely to want to start a true trade war with everybody else, not to mention China?

One clue can be gleaned from the report linked below on the Dow going over 19,000 for the first time in history. A quoted comment by Katie Stockton (chief technical strategist at BTIG) might be something more than just tea leaves in a cup; especially in the last paragraph:

"Global equity markets are reacting positively to new all-time highs in the SPX," said Katie Stockton, chief technical strategist at BTIG, in a note. "Momentum is proving strong enough to overrule overbought conditions, so we think it is appropriate to be buying breakouts."
The three major indexes closed at record levels on Wednesday, along with the small-caps Russell 2000, which continues to outperform the Dow, S&P and Nasdaq since Nov. 8.
But "don't forget, we spend about three months consolidating before this breakout after the election," said Bruce Bittles, chief investment strategist at Baird. "From a time standpoint, this may be just the beginning."
"We are in a transition period on a number of fronts. First, we're moving from an interest-rate driven market into an earnings-driven market," he said. "Also, something most people are missing, is we're getting a more business-friendly administration."
Let's see now. Wasn't he going to really lay into the banks and big business? Not to mention that he was somehow magically going to make more manufacturing jobs appear out of forcing the construction of non competitive factories here? If that were really the case don't you think Wall Street would be a good deal more worried right about now? And of course we already know that he's planning on major tax cuts for "Big Money."

Boy, doesn't this just sound like a revolution in Washington DC?

Maybe if you are a head in the sand avoider of facts it might be.

And at the end of the day here one can only ponder yet again, in mind boggling amazement no less, on how the Trump Chump brigades figured a rich man was going to give them real economic reform. I can hardly wait to see what kind of "coming back to reality" hangover these people are going to get.

Dow Breaks Above 19,000, S&P Jumps Over 2,200 as Stocks Hit Record Highs